A law firm recently announced an investigation of a medical technology research firm that may become a class action lawsuit in the future.
Given Imaging, Ltd., is being investigated by the law office of Brodsky and Smith, LLC, after the company agreed to a transaction that may not be in the best interest of shareholders. There also may be fiduciary duty issues involved.
The company is set to be purchased by Covidien, PLC, and if the pending transaction goes through, shareholders will earn approximately $30 per share in cash. Because of this low valuation, there is a possibility that fiduciary duty was breached by Given Imaging's board of directors, while state law violations may have occurred.
The firm is set to determine if the purchase is in the best interests of stockholders, as the sales process may have some issues. This includes an auction process that may not have been adequate for shareholders, as Given Imaging may have set the value bar too low, thus giving those who had stock in it too low of a return.
Shareholders who are looking to learn more about the ongoing investigation are encouraged to speak with the law firm for more information. This is also a valid offer for those who have questions about how it may affect them. Both Evan Smith and Jason Brodsky, members of the law firm, noted they are available to speak with these stockholders. The best ways to contact them are through mail, email, telephone or by checking out the firm's website.
Other firm investigating claims
A second law office is seeking to find out if the aforementioned claims are true, which could also mean a class action claim is on the horizon.
Law firm Faruqi and Faruqi, LLP, had its partner Juan Monteverde look into the claims that Given Imaging's board may have breached fiduciary duty. The company was sold for close to $860 million, which may be too low. The law office noted it will also seek to learn how much the company should be valued at.
It is possible for stockholders to speak with Monteverde about the investigation to learn more about protecting investments and the case itself. He can be reached by telephone or email. The law firm also has a section on its website devoted to learning more about this specific investigation.